Inditex Earnings, Sales Rose in 1Q — Update

   By Cecilia Butini 
 

Spain's Industria de Diseno Textil, owner of Zara clothing stores, on Wednesday reported higher earnings and sales for the first quarter of its fiscal year.

The company, known as Inditex, posted net profit of 1.17 billion euros ($1.25 billion), from EUR766 million in the year-prior period, on sales which grew to EUR7.61 billion from EUR6.74 billion in the first quarter of the previous year.

Operating income also grew, reaching EUR1.48 billion in the period, from EUR1.03 billion in the same period the year prior, with margin growing to 19.5% from 15.3%, Inditex said.

Quarterly gross margin reached 60.5%, an increase of 34 basis points from the first quarter of 2022, it said.

Sales in constant currency--both in stores and online--grew 16% between May 1 and June 4 versus the same period the year before, said the company.

Looking ahead, it expects a stable gross margin, plus or minus 50 basis points. It also expects ordinary capital expenditure of about EUR1.6 billion as it seeks efficiencies and to increase its competitive differentiation to the next level, Inditex said.

Write to Cecilia Butini at cecilia.butini@wsj.com

(END) Dow Jones Newswires

June 07, 2023 03:17 ET (07:17 GMT)

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